Q6. Which of the following items regarding the corporate income statement is most accurate? A) Examples of extraordinary items include expropriations of property and equipment by foreign governments, losses from earthquakes and tornados, and gains from the sale of investments in subsidiaries. B) If a corporation disposes of a business segment that is separable from the company's core business activities, the results of the discontinued segment are reported as a separate line item below income from continuing operations on a pre-tax basis. C) Unusual or infrequent items appear in the income statement of a corporation as a component of net income from continuing operations.
Q7. For a material item to be classified as an extraordinary item on the income statement, it must be: A) unusual in nature and infrequent in occurrence. B) probable and infrequent in nature. C) estimated and probable.
Q8. Extraordinary items are:
A) unusual in nature and infrequent. B) unusual in nature or infrequent. C) related to the normal course of business.
Q9. Which of the following statements regarding making changes in accounting principles is least accurate? A) A change in accounting principle is a change from one generally accepted accounting principle to another generally accepted principle. The firm making the change must justify the change. B) Changes in accounting estimates are now treated the same as changes in accounting principles. C) The general rule is retrospective application.
Q10. Extraordinary items are: A) unusual or infrequent. B) reported above the line. C) unusual and infrequent.
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发表于 2009-1-17 09:20
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